Why OneMain Holdings (OMF) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional stock ratings based on value, growth, and momentum [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] - The Momentum Score helps investors capitalize on price trends, using factors like one-week price changes and monthly earnings estimate changes [6] - The VGM Score combines the three Style Scores to identify stocks with attractive value, growth forecasts, and momentum [7] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [9] - Stocks with lower ranks, even if they have high Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [10] Company Spotlight: OneMain Holdings - OneMain Holdings Inc. is a financial services company focused on consumer finance and insurance, previously known as Springleaf Holdings [11] - Currently rated 3 (Hold) by Zacks, OneMain has a VGM Score of A and a Momentum Style Score of B, with shares increasing by 4.7% over the past four weeks [12] - Recent analyst revisions have positively impacted earnings estimates for fiscal 2025, with the Zacks Consensus Estimate rising by $0.36 to $6.72 per share, alongside an average earnings surprise of +12.7% [12]